Saturday, 28 March 2020

Incredible 31millions UK workers to get £104 added to salary next week

Around 31 million Brits will get a tax cut worth an average of more than £100 a year in their next pay cheque.

That's because, from April, you won't pay the National Insurance Contributions on the first £9,500 of your earnings - up from £8,632 at the moment.

It means almost all employees earning more than that will see their tax cut by £104 a year, while self-employed people will pay £78 less.

Steven Cameron, Aegon pensions director, said: “Confirmation that the Government is increasing the threshold for when National Insurance becomes payable to £9,500 is good news, saving 31 million people across the UK up to £104 a year. This means those earning under £9,500 will pay no National Insurance whatsoever."

For people worried that this could affect their pension, there was even more good news - with the amount you need to earn to qualify for a National Insurance credit only rising by inflation.

Mirror UK
Tax is coming down - a bit
All the other thresholds for 2020-21 will also rise with inflation, except for the upper National Insurance contribution thresholds that will remain frozen at £50,000, as announced in the 2018 Budget.
"What’s doubly welcome is the confirmation that those taken out of paying National Insurance won’t lose out on credits towards their state pension," Cameron said.
"This is important because people need at least 10 years’ credits to receive any state pension and 35 years to receive the full state pension which is expected to rise to £175.20 a week from April.
"Without this provision, people might have gained from paying less NI today only to suffer from a reduced state pension in future.”

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